The Hindu Business Line : ‘States want more’

As pointed out in the editorial “States want more” (Business Line, May 17), States have a tendency to go on demanding more money from the Centre. The present demand to the Centre to meet 50 per cent of the money required to pay the additional salaries to staff on implementation of the Sixth Pay panel award is not only unreasonable but unjustifiable too. The States do not play their role in effectively managing their finances and simply turn to the Centre whenever some extra expenditure has to be incurred.

There has, no doubt, been constant deterioration in the finances of most of the States and, more often than not, this has been due to negligence and lack of good governance. Many States lavishly spend on populist measures. Even while spending on infrastructural projects, there is no focus on getting results commensurate with the money spent. The productivity of government staff leaves much to be desired. The government too does not show any interest in extracting work and and improving the productivity of the staff commensurate with the increase in salary and amenities provided from time to time as per pay panel awards.

There is, thus, no case for the Centre meeting 50 per cent or even a lesser part of the additional wage bill of States on implementation of the Sixth Pay panel award. The States must be tutored by the Centre regarding management of finances. . States must pay attention to good governance, improvement of staff productivity, maximum tax collection and implementation of plans and projects as per the schedule.

K. K. Ammannaya Udupi

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‘States want more’